Question NW611 to the Minister of Social Development
10 May 2017 - NW611
Masango, Ms B to ask the Minister of Social Development
(1)Whether the contract between her department and Net1/Cash Paymaster Services (Pty) Ltd for the distribution of social grants beyond 1 April 2017 has been finalised, if not, why not; if so, (a) was it finalised in line with the Public Finance Management Act, Act 1 of 1999 and (b) what is the (i) total cost of the contract, (ii) duration of the contract and (iii) unit cost for each grant payment; (2) are there any provisions within this contract for unforeseen or contingent ancillary costs or volumes? NW669E
Reply:
1) Yes, and addendum to the 2012 contract has been signed
(a) It has been finalized as per the National Treasury instruction of 2016/17
(b) (i) is R16.44 per beneficiary projected annual cost of R1 170 080 000.00 calculated at 11 000 000.00 number of beneficiaries
(ii) 12 months
(iii)
|
Types of Grants |
Amount (R) |
|
Older Person’s grant |
R1 600.00 |
|
Older Person’s grant (above 75) |
R1 620.00 |
|
Disability grant |
R1 600.00 |
|
War Veteran’s grant |
R1 620.00 |
|
Child support grant |
R380.00 |
|
Foster Child grant |
R920.00 |
|
Care Dependency grant |
R1 600.00 |
|
Grant-i-aid |
R380.00 |
(2) None. However, the Constitutional Court set out a process for CPS to approach National Treasury for an increase in the transaction costs, should this be necessary to court will make a final decision.